Question
A bank accepts a company's 60-day bill with a face value of $250,000 for an acceptance fee of 130 bps, and sells it in
A bank accepts a company's 60-day bill with a face value of $250,000 for an acceptance fee of 130 bps, and sells it in the money market at 3.15%. What amount does the borrow receive?"
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The acceptance fee of 130 basis points bps is equal to 13 The bank is buying the bill from the ...Get Instant Access to Expert-Tailored Solutions
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Bank Management and Financial Services
Authors: Peter Rose, Sylvia Hudgins
9th edition
78034671, 978-0078034671
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